Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head.

This video is part of the module Compound interest basics of the topic Interest and debt

Brainbuxa.com appreciates and recognises the work done by Sal Khan for delivering great lectures and enhancing Free Education worldwide through the initiative Khan Academy. For more Videos, visit www.khanacademy.org